The Hong Kong-listed real estate company is the latest mainland developer to tap offshore bond markets as Chinese banks become more selective in extending credit, especially to high-yield names.

Shimao Property raised a $600 million seven-year note on Tuesday, joining the flurry of Chinese developers that have tapped the market this year amid tighter onshore banking liquidity and a potential rise in interest rates.

The Hong Kong-listed group's transaction with a callable option in the fourth year on Tuesday is the longest in duration and lowest in coupon done in the high-yield space so far this year.